Crypto Rollercoaster: Zcash Surges While AI Tokens Plunge on Fed Rate News

 

Global Crypto Market Sees 1.2% Dip Following Federal Reserve Rate Cut

The global cryptocurrency market experienced a modest pullback today, as news of the Federal Reserve’s latest monetary policy decision reverberated across digital asset markets. The total market capitalization of all cryptocurrencies now stands at approximately $3.83 trillion, reflecting a 1.2% decline over the past 24 hours. Daily trading activity remains robust, with $171 billion in total volume exchanged across thousands of crypto assets.

Bitcoin continues to dominate the digital currency landscape, holding a commanding 57.5% market share, while Ethereum follows at 12.4%. Analysts note that market fluctuations, combined with macroeconomic factors, are influencing investor sentiment, as traders adjust positions amid rising global interest rate considerations.

Source: Forex Factory

Bitcoin and Ethereum Price Movements

Bitcoin (BTC) is trading at $110,525, down 1.6% in the past day, with $63 billion in daily trading volume and a market capitalization of $2.2 trillion. Despite the decline, Bitcoin remains the preferred digital store of value for institutional and retail investors alike.

Ethereum (ETH), the second-largest cryptocurrency by market cap, currently trades at $3,919.37, marking a 1.5% decrease over the same period. With a market cap of $472 billion and trading volume exceeding $33 billion, Ethereum continues to draw attention due to its smart contract capabilities and role in decentralized finance (DeFi) ecosystems.

Top Trending Coins and Market Movers

Beyond the major cryptocurrencies, smaller altcoins displayed notable volatility today. Arcblock (ABT) fell 4.9% to $0.607, while Akash Network (AKT) experienced a minor dip of 0.9%, trading at $0.784. In contrast, Zcash (ZEC) surged 11.9% to $356.84, reflecting growing investor interest in privacy-focused blockchain networks.

Other notable movers include Plasma (XPL), down 9.8% at $0.3314, and Aster (ASTER), which declined 6.5% to $1.02. These price shifts demonstrate the sensitivity of mid-cap tokens to both market sentiment and emerging sector news.

Meanwhile, the top gainers today were led by Sapien (SAPIEN), rising 44.5% to $0.1845, followed closely by OpenLoot (OL), up 43.9% to $0.04158, and Jelly-My-Jelly (JELLYJELLY), which climbed 38.3% to $0.1141. These gains reflect active trading and community-driven demand in niche crypto projects.

On the downside, AI Companions (AIC) emerged as the biggest loser, plummeting 34.3% to $0.2557, while Ape and Pepe (APEPE) fell 26.5% to $0.0518, and ChainOpera AI (COAI) dropped 23.1% to $3.11. Analysts attribute these declines to profit-taking, algorithmic trading triggers, and market-wide risk-off sentiment.

Stablecoins and DeFi Sector Update

Stablecoins maintain a total market capitalization of $311 billion with $129 billion in trading volume, showing stability amid market turbulence. The DeFi segment experienced a slight decline of 0.4%, with a market cap of $143 billion and $8 billion in daily trading activity. DeFi continues to represent 3.7% of the overall cryptocurrency market, underscoring its growing significance in lending, borrowing, and decentralized trading protocols.

Source: Alternative Me

Investor Sentiment: Fear and Greed Index

Investor sentiment, measured by the Bitcoin Fear and Greed Index, indicates a shift toward caution. The index currently reads 34, representing a state of “Fear,” a drop from yesterday’s neutral level of 51. A week ago, the market sentiment was even more pessimistic at 27, while a month ago, it remained neutral at 50. This shift suggests heightened investor caution, likely driven by recent price declines, macroeconomic uncertainty, and ongoing monetary policy adjustments.

Key Crypto Market Developments Today

Several high-profile events are influencing market dynamics:

• Fidelity Solana ETF Filing: Fidelity has updated its S-1 filing for a spot Solana (SOL) ETF, eliminating prior delays. This adjustment accelerates the approval process, allowing the ETF to become effective without waiting for the SEC’s full review, potentially opening a regulated entry point for institutional investors.

• Canton Coin Investment Plans: Canton Network’s investors are reportedly planning to raise $500 million to form a publicly listed company focused on Canton Coin, functioning as a supervalidator and expanding decentralized app networks. Major backers include DRW Holdings and Liberty City Ventures.

• Trump Memecoin Expansion: Fight Fight Fight LLC, the company behind the Trump-themed cryptocurrency, is in talks to acquire the U.S. arm of Republic, a crowdfunding platform. The acquisition could enhance the token’s adoption for startup fundraising and payments.

• Consensys IPO: Consensys, the company behind MetaMask, is preparing for an initial public offering (IPO) with JPMorgan and Goldman Sachs as lead underwriters. Improved regulatory clarity is encouraging crypto firms to pursue public listings sooner.

• Mastercard Acquires Zerohash: Mastercard is reportedly negotiating a $1.5–$2 billion acquisition of Zerohash, a crypto infrastructure startup specializing in stablecoins and institutional digital asset solutions, marking a significant step into the digital finance ecosystem.

• Federal Reserve Rate Cut: The Federal Reserve reduced its benchmark interest rate to 4.00% and announced it will halt the reduction of its balance sheet from December 1. Fed Chair Jerome Powell indicated that a further rate cut in December is uncertain, reflecting internal committee divisions over future monetary policy.

• Bank of Canada Rate Cut: Mirroring the Fed, the Bank of Canada cut its key rate by 0.25% to 2.25%, its lowest level since July 2022. Governor Tiff Macklem highlighted that the reduction helps mitigate the impact of U.S. tariffs on the Canadian economy.

• Pavel Durov’s Cocoon Launch: At Blockchain Life 2025, Telegram founder Pavel Durov unveiled Cocoon, a confidential compute network on the TON blockchain, set for launch in November. The project will expand Mini Apps’ ecosystem, which generated $1 billion for developers in the previous year.

• Ondo Finance Launch: Ondo Finance unveiled its global trading platform on BNB Chain, allowing over 100 tokenized U.S. stocks and ETFs to be traded directly on-chain. The platform integrates with ecosystem protocols like PancakeSwap, bridging traditional and decentralized finance.

• FTX Architect Platform: Former FTX US President Brett Harrison is launching Architect, a new trading platform specializing in perpetual contracts for stocks and forex, backed by Series A funding from Coinbase Ventures, Circle Ventures, and SALT Fund.

• BNB Supply Update: YZi Labs confirmed BNB’s total supply remains capped at 100 million coins, with over 64 million permanently burned. Public holders retain the majority, while the BNB Foundation and Binance maintain smaller portions.

Conclusion: Navigating Uncertainty in Crypto Markets

Today’s market activity reflects a cautious environment for crypto investors, driven by interest rate decisions, regulatory developments, and sector-specific news. While Bitcoin and Ethereum continue to dominate, altcoins and DeFi tokens show heightened volatility, highlighting the market’s speculative nature. As institutional adoption accelerates through ETFs, tokenized assets, and blockchain innovations, investors are carefully balancing risk and opportunity.

Market participants are advised to monitor macroeconomic trends, investor sentiment indicators, and regulatory updates to navigate this evolving landscape effectively.

Writer @Ellena

Erlin is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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